Business Jason MacGregor: Don't drop the financial ball on New Year's Eve

The holidays are a time of year when most of us are paying more attention to how much money is leaving our bank accounts rather than how much we're saving. However, Dec. 31 is an important financial deadline on a number of fronts. Letting it pass by can be costly.

Taking a bit of time now to review your asset options is the best way to ensure the only ball that drops on New Year's Eve is the one in Times Square.

Here are my three must-do New Year's reviews:

1) Retirement Accounts: If you turned age 70-1/2 or older this year and you have any retirement accounts (excluding Roth accounts), you are required to take a Required Minimum Distribution (RMD). The deadline is the end of the calendar year and failure to take your RMD can be substantial. The IRS can fine you 50 percent of the total amount of what you should have taken out. The custodian of your retirement should address the distribution for you, but given the potential of failing to do so is significant it's worth checking that you have satisfied your RMD.

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2) 401k Accounts: The end of the year is when many employers make changes to 401k options; sometimes adding new funds, getting rid of some altogether, or even changing providers. Take note that any change -- even the ones that come with nifty letters stating "no action by you is necessary" -- can directly impact your retirement savings.

Take 15 minutes and review any changes your employer-sponsored retirement account may be implementing. Verify that any fund changes are still consistent with your investment objectives, double check your asset allocation mix, and most importantly, look to see what percentage of pay is being withheld. As a general rule of thumb, a minimum of 10 percent of your pay should be going into your account.

3) Investment Losses: If you experienced losses in any of your taxable investments over the past year, you may be able to use the loss to help save you money elsewhere. By selling a taxable investment for less than what you paid for it creates a capital loss. You can use the loss to either reduce your overall taxable income or to offset any capital gains you may have made -- including the sale of real estate. Plus, you can always buy back anything you sell for tax loss harvesting. You just need to wait at least 31 days to avoid the "wash sale" rule.

As with all tax-related concerns, it's always a good idea to do your research by visiting www.is.gov or speak with a local tax professional.

With just these three simple reviews (and any necessary adjustments), you can realize some significant savings and ensure that when the ball does drop on Dec. 31, your financial picture is a bit more secure and bright for 2013.

Happy holidays and warm wishes for a healthy and prosperous New Year!

Jason MacGregor, principal of Minich MacGregor Wealth Management in Saratoga Springs, is a fee-only registered investment adviser who provides investment advice to individual company retirement plan participants. He can be reached at (518) 499-4565 or by email at jason@mmwealth.com